This paper extends a small linear model of the Israeli economy to allow for nonlinearities in the inflation …

changes have swifter effects on output and inflation compared to advanced economies and that exchange rate dynamics plays a … key role in this connection. Importantly, the response of inflation to monetary policy shocks has grown stronger and the … output-inflation tradeoff improved since the introduction of inflation targeting. …

inflation-unemployment process. The results provide some evidence in favor of the Lucas critique by showing that the short …-run unemployment-inflation trade-off tends to improve in countries that are successful in providing low and stable inflation. …

a small macro model with NAIRU uncertainity under different assumptions about the way inflation expectations are formed … inflation expectations respond endogenuously policy credibility strengthens the case for forward-looking inflation forecast …

.S. output-inflation process, which implies that excess demand conditions are much more inflationary than excess supply … overheats because this will necessitate a severe tightening in monetary conditions in order to reestablish inflation control … negative if inflation is to be stationary. The paper also shows that a failure to account for this important implication of …

This paper develops a small model of the output-inflation process in the United States in order to examine the … interest rates respond contemporaneously to output and inflation and a forward-looking policy rule that exploits information … model of inflation where positive deviations of aggregate demand from potential are more inflationary than negative …